NJ Land Banking Law Will Help Newark Combat Blight: Gov. Murphy

NEWARK, NJ — A powerful new tool has been added to the arsenals of New Jersey towns seeking to combat neighborhood blight: “land banking.”

Earlier this week, Gov. Phil Murphy and Newark Mayor Ras Baraka announced the signing of the New Jersey Land Bank bill at a news conference on South Orange Avenue.

The new law – which takes effect immediately – authorizes New Jersey communities to create “land banks,” a legal mechanism that helps government entities to buy abandoned, vacant or neglected properties for the public good.

Here’s how it works, according to a statement from Newark city officials:

“Under the New Jersey Land Bank Law, municipalities will be allowed to designate a non-profit organization or a public entity as the municipality’s land bank entity. The public entities which a municipality may designate as a land bank entity include redevelopment entities, county improvement authorities, and departments and agencies of the municipality itself. Land bank entities will be permitted to acquire properties on its own and act as a municipality’s agent to purchase liens at a tax sale, carry out lien foreclosures, and take individual abandoned properties.”

Hopefully, the new law will allow towns and cities to turn blighted eyesores into productive properties again, supporters said.

• See related article: Newark Mayor Says 'Land Banking' Is Powerful Way To Fight Blight

Land banks will be required to allow “community advisory boards” to access certain information about the entity’s operations. Land banks will also have to develop and maintain an online, publicly accessible database of current and former properties.

Other states that have instituted land bank legislation include Ohio, Michigan and New York.

Supporters of the new law include:

Gov. Phil Murphy - “Where some see blight, we see promise. Whether it is in Newark, Paterson, Trenton, or Camden, the creation of a land bank will be a powerful tool for taking empty and overlooked properties and turning them into places where residents can live and work, and where a new sense of community can be ignited.”

Lt. Governor Sheila Oliver – “Communities often face complex challenges when securing finances and resources for projects in blighted areas and our hope is that by allowing municipalities to create a public land bank, it will help ease the process of transforming properties from brownfields to successful redevelopment projects. These impactful projects have the power to spur on economic growth, create jobs and revitalize an entire community.”

Newark Mayor Ras Baraka – “This land bank law is monumental for New Jersey and will have an enormous impact on Newark. For more than 50 years, vacant and abandoned properties have blighted some of our neighborhoods and affected the quality of life of our residents. With this new law, we are finally turning the page. This important tool will empower the people of Newark to acquire these properties, restore them, and transform them into community assets.”

Senator Teresa Ruiz – “Creating land banks and posting available properties online will allow municipalities to create positive redevelopment plans in our communities. Doing this in a responsible way can lead to revitalized cities and neighborhoods that existing residents can still afford to live in. By repurposing foreclosed or abandoned properties as quickly as possible we can prevent them from becoming areas that attract negative activity. It also has the potential to promote economic development and expand housing opportunities in both urban and rural parts of our state.”

Assemblywoman Mila Jasey – “As we work to combat our state’s critical housing shortage, it makes sense for us to equip municipalities with as many tools to provide affordable housing and larger development, as well as reduce the number of vacant and abandoned properties. Designating single entities to act on behalf of municipalities will hopefully expedite the turnover process, and help us find productive uses for these properties.”

Trenton Mayor Reed Gusciora – “This bill will go a long way in helping Trenton get abandoned properties back on the tax rolls and redeveloped into projects that benefit the community. Land banks allow us to build mixed-income housing and other large development projects, we will be able to make great progress in revitalizing parts of Trenton that need new life while creating economic growth and job opportunities for Trentonians.”

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